Annual Meeting 2017 Managing Directors Address Scott Annual - PowerPoint PPT Presentation

Annual Meeting 2017 Managing Directors Address

Scott Annual Meeting 2017 Outline Performance & Results Operational Review Research & Development Opportunities & Ambitions Outlook

Performance highlights ‐ Results In the year to 31 August 2017 we : Achieved revenues of $133m – up 18% on 2016 Delivered operating cashflows of $13m with cash reserves of $26m Had a full 12 months contribution from our operations in Germany and converted our Bladestop licence to a full ownership model Delivered Net Profit Before Tax of $15m – up 35% on 2016 Increased annual dividend by 0.5c to 10 cents

Revenues ‐ Industry Movements 2016 to 2017 160,000 140,000 4,104 ‐ 1,588 6,127 120,000 11,238 100,000 80,000 132,631 60,000 112,044 40,000 20,000 ‐ 2016 sales Other industrial Appliances Mining Meat processing High temperature 2017 sales automation superconductors

Revenues ‐ Industry Movements 2016 to 2017 • Industrial Automation & Robotics +41% yoy – a full 12 months of Germany – more customers seeking robotic solutions to labour concerns • Appliances +30% yoy – a full 12 months of Germany – several large projects for China and the USA • Meat Processing +2% yoy – activity consolidated following a 256% increase last year – expanding resources for the next phase of growth • Mining +18% – mining upcycle swing across all geographies

Ten year revenue growth profile 10 year CAGR 20% 21% 5 year CAGR 35% 3 year CAGR Bladestop 140,000 18,000 Oct 16 Sales to JBS buys 50.1% 16,000 JBS: Apr 16 120,000 $3.2m 14,000 100,000 12,000 MAR Jan 15 10,000 80,000 8,000 RobotWorx May 14 60,000 6,000 Rocklabs 4,000 40,000 Apr 08 2,000 20,000 0 0 ‐2,000 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Revenue EBITDA CAGR: Compound annual growth rate

Ten year divisional revenue breakdown April 2016 JBS acquires 50.1% at $1.39 per share Accum growth Aug BD 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $m $m $m $m $m $m $m $m $m $m $ m Meat processing 5 5 6 6 8 8 11 39 40 40 Industrial 2 1 1 5 5 7 29 27 39 39 Mining 9 12 19 28 34 29 14 17 22 26 17 Appliances 16 12 22 16 16 17 29 14 20 26 10 HTS products 2 3 2 2 2 3 2 2 Other 6 3 3 1 1 2 1 1 Total 2 5 3 1 4 7 5 9 6 7 6 3 6 2 7 3 1 1 4 1 3 4 1 0 8 JBS sales 0 .3 3 .2 Acquisitions Rocklabs RobotWorx MAR Bladestop Apr-08 May-14 Jan-15 Oct-16 Revenue CAGR 1 year 3 year 5 year Max. Mining 18% 25% -2% 10% Appliances 30% 39% 12% 10% Meat processing 2% 90% 50% 30% HTS products -48% -8% 3% -5% Industrial 41% 16% 63% 43% TOTAL 1 7 % 3 5 % 2 1 % 2 0 %

Ten year Net Profit After Tax growth profile 10 year CAGR 57% 16% 5 year CAGR 42% 3 year CAGR Bladestop 10,000 Oct 16 JBS buys 50.1% Apr 16 8,000 6,000 MAR Jan 15 RobotWorx 4,000 May 14 Rocklabs 2,000 Apr 08 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 ‐2,000 CAGR: Compound annual growth rate (Revenue)

Share price performance and gross returns $4.00 Gross return $3.50 180% $3.00 $2.50 April 2016 JBS deal approved and completed August 2015 $2.00 JBS deal announced $1.50 $1.00 Nov 12 Mar 13 Jul 13 Nov 13 Mar 14 Jul 14 Nov 14 Mar 15 Jul 15 Nov 15 Mar 16 Jul 16 Nov 16 Mar 17 Jul 17 Gross return ( share price and dividends) Based on a $3.70 share price (23rd Nov 2017) 1 year 3 year 5 year Since Aug 2015 Scott 87% 156% 73% 180% Share price $2.10 $1.65 $2.54 $1.39 Dividends 10.0c 27.5c 45.5c 19.5c 1 year 3 year 5 year NZSE 20% 53% 108% Out/ under perform ance 67% 102% -34%

Scott Annual Meeting 2017 Outline Performance & Results Operational Review Research & Development Opportunities & Ambitions Outlook

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Operations – Health & Safety Commitment by all to safety at work Systems and Processes Monitoring effectiveness Results matter

Operations – Europe

Operations – Asia

Operations ‐ Australia

Operations ‐ Australia

Operations – Americas

Operations – The Americas

Operations – New Zealand

Operations – New Zealand

Operations – New Zealand

Operational Overview – New Zealand

Executive Team

Scott Annual Meeting 2017 Outline Performance & Results Operational Review Research & Development Opportunities & Ambitions Outlook

Research & Development R&D Spend between 5% and 10% of total revenues Demand pull, quick outcomes and collaborative approach Includes: AGV's Robotics generally Inc. Collaborative and mobile robotics LED automoulding Scott Dairy – milking robots Virtual Reality Advanced vision and sensing technologies • DEXA & MEXA (Hyperspectral, 3D time of flight, NMR)

Operations – New products Commercialisation RoboFuel Xray Primal Middle system Machine Diagnostic tools and reporting 200 MHz NMR Magnets Chine Bone machine Hammermill Robotic Idler change Beef Rib Cutting

2017 Projects INSERT 2 Min video

Scott Annual Meeting 2017 Outline Performance & Results Operational Review Research & Development Opportunities & Ambitions Outlook

Opportunities and Ambitions SCOTT is overcapitalised and needs to grow Organic Growth • Expand and improve on current activities • Ongoing Investment in R&D: • Maintenance ‐ to maintain competitive edge • Development ‐ to create new opportunities Acquisitions • Complementary to existing business (Geography/technology/skills/markets)

Key Product Drivers / Market Opportunities key product drivers in the short to medium term – market opportunities for : • Bladestop

Key Product Drivers / Market Opportunities key product drivers in the short to medium term – market opportunities for : • Bladestop • Increasing adoption of meat automation technology: • Lamb in Australasia • Started with Beef in Australia • Development work in Pork and Poultry in USA and Europe

Key Product Drivers / Market Opportunities key product drivers in the short to medium term – market opportunities for : • Bladestop • Increasing adoption of meat automation technology: • Lamb in Australasia • Started with Beef in Australia • Development work in Pork and Poultry in USA and Europe • DEXA – Australia developments and wider interest

Key Product Drivers / Market Opportunities key product drivers in the short to medium term – market opportunities for : • Bladestop • Increasing adoption of meat automation technology: • Lamb in Australasia • Started with Beef in Australia • Development work in Pork and Poultry in USA and Europe • DEXA – Australia developments and wider interest • Mining technology developments – robofuel – Robotic idler change

Scott Annual Meeting 2017 Outline Performance & Results Operational Review Research & Development Opportunities & Ambitions Outlook

Outlook ‐ 2017 Market Overview : Forward project work – 10 Months Substantial sales pipeline Diversification Strong balance sheet to leverage off

Scott Annual Meeting 2017 Thank you